New York, New York, February 1, 2023 - COMPASS, a leading technology-enabled residential real estate brokerage, today released its second annual Ultra-Luxury Report examining 2022 residential transaction and sales volumes at $10 million and above across 53 U.S. markets [^1]. The report’s findings show that ultra-luxury sales last year surpassed pre-pandemic levels as emerging U.S. markets ignited growth beyond conventionally ultra-wealthy enclaves. Nationally, 1,774 homes priced at $10 million and above traded for $29.5 billion, representing increases of 95.3 percent and 104.7 percent, respectively, compared to 2019, primarily driven by affluent buyers looking to diversify their real estate portfolios as inventory remained tight.
Emerging and Reemerging, Ultra-Luxury U.S. Markets
Ten pre-pandemic markets with no ultra-luxury trades showed continued transaction volume momentum in 2022. Brooklyn, North Florida, and Boulder saw significant 300 percent yearly increases. Other high-growth areas include California's East Bay, Dallas-Fort Worth, Central Florida, and Austin. All saw transaction volume growth from 25 to 100 percent in 2022 compared to 2021. These ultra-luxury markets demonstrate that the sector remains robust, resilient, and more dispersed than ever before. "Lots of new wealth was created during the pandemic, and simultaneously, the ultra-wealthy reimagined their investments and living arrangements," said Leonard Steinberg, Chief Evangelist at COMPASS. "During lockdowns, they wanted everything they needed in one place and found inspiration in markets they had not considered before, creating new ultra-wealthy areas that did not exist a few years ago and inspiring a renaissance in others."
Other markets more established in the ultra-luxury space experienced greater prominence post-pandemic. For example, Telluride and Palm Springs soared to new heights with 600 percent increases in transaction volume last year compared to 2019. Sales volume in Palm Springs climbed 117.6 percent last year compared to 2021, eclipsing $207.4 million. "People from across the globe are purchasing luxury estates to enjoy the lifestyle our desert offers," said Valery Neuman, a COMPASS Palm Springs agent. "No longer dubbed as the retirement mecca, buyers are younger and taking advantage of all its amenities, including golf, pickleball, tennis, concerts, fine dining, fine arts, and a small airport with private jet access." Other notable high-growth areas include Broward County, Florida, with a 480 percent increase in transaction volume, and Hawai'i, with 190 percent more trades. "It is no surprise that affluent buyers are seeking to call Hawai'i home with its conservation-zoned lands, pristine waterfalls, clean air, and endless opportunities for outdoor recreation," said Roni Marley, a COMPASS Hawai'i agent.
Manhattan
Manhattan led all ultra-luxury markets with $6 billion in sales across 343 trades. Nine out of the top 10 deals of the year in Manhattan occurred during the first half of 2022, pointing to a market correction while demonstrating strength as total transactions for the year were up 5.21 percent compared to 2021 [^1]. "While the $10 million-plus market in Manhattan slowed notably between July and October, contract activity rose in November and December, especially in the $20 million-plus market, evidence that the ultra-wealthy who seize opportunities in volatile times usually end up winning in the long term," said Tony Sargent, a COMPASS New York agent. "We saw this in 2009, as well as in 2018-2020." The Luxury Division at Compass was established in February of 2020 to elevate the level of agent support, enhance the aesthetic of marketing elements, and embolden the presence of exclusive properties within the marketplace. Exclusive offerings from the Luxury Division are tailored to aid Compass agents from the preparation to the promotion and the ultimate sale of a luxury property, all curated to meet the standard that luxury commands. To view the complete report, please visit the COMPASS Luxury Division website: https://www.luxuryatcompass. com/ultra-luxury.
[^1] All data in this press release is derived from the Compass $10M+ National Luxury Report 2021, Ultra-Luxury, available on the Compass Luxury Division website. Please refer to that report for additional information, including all of the publicly available sources from which each market’s data was derived.
[^2] Sales Volume, in this context, is calculated as the monetary value of exchanges of property rights from one entity to another at and above 10 million dollars during the time periods described.
[^3] Transaction Volume, in this context, is calculated as the number of exchanges of property rights from one entity to another at and above $10 million dollars, during the time periods described.
